Landlords fear rising costs and rent arrears in 2024, survey reveals

Landlords fear rising costs and rent arrears in 2024, survey reveals

0:01 AM, 12th January 2024, About 5 months ago

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The top worries for landlords in 2024 have been revealed in a survey which found that rising mortgage payments and interest rates are the number one concern.

Molo, a digital mortgage lender, asked landlords to select their biggest worries from a list of 15 options and found that landlords in Birmingham and London are the most worried about these issues.

Another major worry for UK landlords in 2024 is tenants being unable to pay rent, with 44% of landlords choosing this as one of their top five concerns.

This is the number one worry for 15% of landlords, and the biggest concern for landlords in Manchester, where 59% of landlords voted this as one of their top five worries for the year ahead.

This worry may stem from the fact that 59% of landlords across the UK have experienced an increase in late payments since late 2021, according to a previous Molo study.

‘Landlords need to make sure they’re fully prepared’

Molo’s VP of strategy, Mark Michaelides, said: “Landlords need to make sure they’re fully prepared for the year ahead.

“In particular, with the Renters (Reform) Bill being discussed in Parliament they need to be ready for the upcoming changes and should take steps to manage these proactively.

“It’s not too early to start thinking about how you might need to adapt to the changes.

“For example, do you need to review your portfolio, or will you be implementing a new pet policy?”

He added: “In general, landlords should also focus on keeping their properties well-maintained, acting quickly with any issues, and keeping communication lines open with tenants to make sure both parties are happy.”

Landlords are concerned about changes in tax laws

The survey also revealed that UK landlords are concerned about changes in tax laws, such as buy to let tax rates and reduction of capital gains tax allowances, with 36% of landlords selecting this as one of their top five worries.

Other worries that made it to the top five are the cost of decorating and maintenance increasing and landlord insurance prices increasing, both with 34% of landlords choosing them as one of their top five concerns.

To help landlords cope with these worries, Molo has provided some expert guidance on how to reduce them.

For example, Molo suggests that landlords can lock in a fixed-rate mortgage to protect themselves from rising interest rates.

The firm also advises landlords to communicate with their tenants regularly and offer flexible payment plans if they are struggling to pay rent.

They should also keep up with the latest tax changes and seek professional advice if needed.

It’s also a good idea to shop around for the best deals on insurance and maintenance and invest in energy-efficient improvements to lower their bills and attract more tenants.

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